Uganda: Just 41 MPs Approve Shs9tn Loan Blitz

In a Tuesday session that has sparked outrage among fiscal watchdogs, a mere fraction of the 11th Parliament authorized the government to proceed with massive loan requests totalling nearly Shs9 trillion.

By suspending key safeguards, the House bypassed the standard oversight procedures designed to protect the national economy.

While the House comprises over 556 legislators, only 41 MPs--including 27 from the ruling NRM, 10 from the opposition, and 4 UPDF representatives--were present to decide on borrowing that will impact millions of Ugandans.

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The session was characterized by a controversial suspension of the Parliamentary Rules of Procedure. Specifically, the House set aside Rule 162, which dictates the mandatory flow of financial scrutiny:

Rule 162(2): "The Speaker shall commit the proposed loan or guarantee request to the Committee on National Economy and to the relevant Sectoral Committee, under which the subject matter of the request falls."

Rule 162(4): "The Committee on National Economy shall present the report on the loan or guarantee request to the House."

By suspending these clauses, the loans were "okayed" without a single committee report, risk assessment, or sectoral input.

Furthermore, the session proceeded despite Rule 25, which mandates that a quorum--defined as one-third of all Members entitled to vote--must be present when the House is "voting on any question."

With only 41 members present, the attendance fell significantly short of the roughly 185 members required for a constitutional quorum.

The most significant approval was a massive Shs7.3 trillion loan from Bahrain intended to finance the Uganda National Oil Company (UNOC).

The Leader of the Opposition, Joel Ssenyonyi, also called for urgent scrutiny into a proposed $2.3 billion (Shs8.09 trillion) investment from the US Government into Uganda's health sector.

Ssenyonyi highlighted that a similar deal was recently halted in Kenya over medical privacy issues, arguing that Uganda must not rush into agreements involving sensitive citizen data.

As the loans were cleared, State Minister for Finance (General Duties), Henry Musasizi, officially tabled the National Budget Framework Paper for FY 2026/2027 Proposed Budget of Shs69 trillion (a decrease from the current Shs80 trillion).

>Domestic Revenue Target: Shs48.7 trillion.

Minister Musasizi Government has made enough efforts in supporting the economy with expectations that this will boost revenues, emphasizing a focus on domestic production.

The move to skip committee scrutiny and proceed without a full quorum did not go unchallenged.

MP Lee Oguzu cautioned the House that passing loans in violation of Rules 162(2) and (4) undermines the legislature's authority.

"This practice of suspending rules for reports to be disregarded is dangerous," warned one MP. "We are avoiding the very scrutiny that ensures these loans are viable and not just a burden to the future taxpayer."

With Uganda's public debt hovering near Shs116 trillion as of June 2025, analysts warn of three primary risks:

Debt Sustainability: Approving Shs9 trillion in a single afternoon pushes the debt-to-GDP ratio closer to the "red zone."

Absorption Capacity: Without committee oversight, there is no guarantee that borrowing entities are ready to utilise the funds, leading to high commitment fees on undisbursed money.

Constitutional Challenges: Legal experts suggest that rushed approvals involving a lack of quorum (Rule 25) can be challenged in the Constitutional Court for violating the Public Finance Management Act.